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HomeMy WebLinkAbout1994-11-22 - AGENDA REPORTS - LACO TRANS DISCRETIONARY FUNDS (2)AGENDA REPORT City Manager Approv Item to be presented y� Jeff Kolin, uty ity Manager CONSENT CALENDAR DATE: November 22, 1994 SUBJECT: MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY TO APPROVE THE USE OF PROPOSITION A DISCRETIONARY FUNDS DEPARTMENT: Public Works BACKGROUND Proposition A Discretionary funding is part of a voter -approved countywide ballot measure passed in 1980. The measure authorized a one half percent (0.05 %) sales tax increase to be used for public transit purposes. The City's transit system uses some of the funding from this source for operating assistance related to the local fixed route and some of the commuter service. The Los Angeles County Metropolitan Transportation Authority (MTA), administers Prop A funds. The attached Memorandum of Understanding (MOU) is the appropriate instrument, as determined by the MTA, to approve and disburse funds. The MOU will guide fund disbursement for the period of July 1, 1994 through June 30, 1997. For the 1994 - 95 fiscal year, a maximum of $923,614 will be awarded to the City. This money is currently reflected in the FY '94 - '95 Budget estimated revenue account no. 18-3575. Future years will be determined later. RECOMMENDATION Approve the attached Memorandum of Understanding between the City and The MTA and authorize the City Manager to sign on behalf of the City. ATTACHMENT Memorandum of Understanding propa0t.mar APPROWCCD Agenda Item: Memorandum of Understanding for Proposition A Discretionary Funds Page 1 of 6 MEMORANDUM OF UNDERSTANDING FOR PROPOSITION A DISCRETIONARY FUNDS WHEREAS, on November 4, 1980, the voters of the County of Los Angeles approved by majority vote Proposition A, an ordinance establishing a one-half percent tax for public transit purposes; and WHEREAS, the Los Angeles County Metropolitan Transportation Authority ("MTA"), as the agency responsible for administering the tax, has entered into an agreement with the Ca!ifornia State Board of Equalization for administration of the tax; and WHEREAS, the City of Santa Clarita ("GRANTEE") has requested funds under the Proposition A Discretionary Grant Program (the "Program") for operating assistance; and WHEREAS, at its July 27, 1994 meeting, the MTA authorized GRANTEE to receive funds under the Program; and WHEREAS, the MTA has approved the following goals for implementation of the Program: • Minimize fare increases; • Minimize service cutbacks; and 0 Improve transit operator efficiency and effectiveness. NOW, THEREFORE, MTA and GRANTEE hereby agree to the following terms and procedures for transfer of the Discretionary Grant formula funds. ARTICLE 1. TERM 1.0 This Memorandum of Understanding ("MOU") will be in effect from July 1, 1994 through June 30, 1997 as amended, unless the Proposition A Discretionary Guidelines adopted April 24, 1991 (the "Guidelines") are revised by MTA prior to the expiration date. In the event the Guidelines are so revised, this MOU shall terminate on the effective date of the revised Guidelines. Memorandum of Understanding for Proposition A Discretionary Funds Page 2 of 6 ARTICLE 2. SERVICE ADJUSTMENTS AND STANDARDS 2.0 The GRANTEE agrees to comply with all applicable provisions of the Guidelines, including without limitation, all applicable service adjustments, standards, warranties and conditions specified in Sections 1.1 through 8.4 of the Guidelines. 2.1 GRANTEE agrees to continue reporting Transit Performance Measurement (TPM) data to MTA as required under the TPM Guidelines adopted pursuant to AB 103 (PUC Section 130380). The TPM data will be evaluated as needed by MTA. Only the services included in the TPM program are eligible for Discretionary Grant formula funds. 2.2 In order to receive Proposition A Discretionary Grant funds, GRANTEE warrants that it will: A. Cooperate and coordinate with other operators in the development of an integrated countywide transportation system; B. Make every effort to improve upon the existing span and scope of their transit service (minimum standards are detailed in Section 8.1 of the Guidelines); C. Ensure that service quality improvements are implemented whenever possible (e.g., added service to meet demand; routing and scheduling improvements); D. Ensure that the existing level of service is maintained and that major service changes are subject to the adopted Service Notification Policy; E. Make every effort to ensure that the total number of linked passengers (riders) is maintained or increased; F. Certify that GRANTEE is not effectively precluded by any collective bargaining agreement which is in effect on or after July 1, 1988, from contracting existing, new or restructured services; G. Make every effort to control operating costs within the CPI (as defined in Article 3 below) on an average over time, in order to keep base fare increases within the CPI increase; H. Agree to secure a local contribution as described in Section 8.3 of the Guidelines. Memorandum of Understanding for Proposition A Discretionary Funds Page 3 of 6 ARTICLE 3. REIMBURSEMENT TO GRANTEE 3.0 Requests for reimbursement to GRANTEE shall be made by the GRANTEE annually using the Proposition A Discretionary Grant Worksheet (Attachment A). However, the MTA will disburse 1/12 of the GRANTEE's maximum eligible formula grant share each month, provided funds are available. 3.1 Reconciliation will occur annually in May, based upon estimated actual expenses and revenues. All disbursements will be considered an estimate subject to adjustment upon receipt of the TDA Fiscal and Compliance audits. The audit must be submitted within 120 days of the close of the fiscal year. 3.2 If the audit indicates that the GRANTEE did notexpend all programmed formula funds received during the fiscal year of allocation, such unexpended funded funds must be returned to MTA within 60 days of the completion of the TDA Fiscal and Compliance Audits. Such unexpended funds will be treated as carryover funds and held by MTA on behalf of GRANTEE for a period of two years. 3.3 Under no circumstances will the amount of money transferred to the GRANTEE under this MOU exceed $49,447.92 per month, or $593,375 for FY 1995. Fiscal Year 96 and 97 allocations will be made in accordance with the Guidelines. 3.4 A financial worksheet must be submitted annually by GRANTEE indicating maximum annual allocation and estimated monthly payments. 3.5 The GRANTEE's final approved financial plan will be attached to this MOU upon approval by the Chief Executive Officer or his designee, and will serve as an amendment to this MOU. 3.6 The reimbursement ceiling may be adjusted in certain situations, as specified in the Guidelines. ARTICLE 4. CARRYOVER OF FUNDS 4.0 The GRANTEE agrees to commit all TDA, STA and Section 9 operating subsidies prior to committing Discretionary Grant formula funds. 4.1 GRANTEE may carry over, for two years, one hundred percent (100%) of its annual grant formula allocations minus any portion received during the fiscal year. The carryover funds will be calculated after the Memorandum of Understanding for Proposition A Discretionary Funds Page 4 of 6 Discretionary Grant formula fund program's fiscal year close-out, and will be based on audited expenses. 4.2 Only carryover Program formula funds can be used for capital projects. GRANTEE must follow the existing MTA approval process when applying program carryover funds to capital projects. 4.2 Any unused carryover funds will be transferred to the Proposition C 40% Fund after two years. ARTICLE 5. LOCAL CONTRIBUTION REQUIREMENT 5.0 In accordance with the Proposition A Local Return Guidelines, the GRANTEE agrees to secure continued financial support from any funds derived from a property tax. In addition, the GRANTEE agrees to secure local financial support. 5.1 The actual amount of local support will be equivalent to five percent (5%) of the current fiscal year operating budget, or twenty-five percent (25%) of the current fiscal year Local Return funds received by the GRANTEE's sponsoring municipality, whichever is less. The GRANTEE agrees that the above requirements equate to a local contribution of $304,775.75 for the Fiscal Year 1995. This amount will be adjusted upon receipt of the TDA Fiscal and Compliance audit. 5.2 Only local contributions made to the operating budget are eligible to meet the Local Contribution Requirement. 5.3 Any GRANTEE not expending an amount equal to or greater than fifty percent (50%) of their annual Proposition A Local Return allocation during the year ended June 30 will have their Proposition A Discretionary _ fund grant reduced by the amount of unexpended annual Proposition A Local Return funds allocated which exceed fifty percent of that year's allocation. 5.4 If the Local Contribution Requirement is not met, the GRANTEE must make a full refund of its Discretionary Grant formula fund allocation to MTA. ARTICLE 6. CONDITIONS 6.0 The MTA, at its discretion, may withhold all or part of the GRANTEE's discretionary grant allocation if all conditions identified in Section 8 of the Guidelines are not met. Memorandum of Understanding for Proposition A Discretionary Funds Page 5 of 6 6.1 GRANTEE agrees to comply with all applicable local, state and federal laws, rules and regulations in the provision of public transit services. 6.2 GRANTEE understands and agrees that in programming these funds and entering into this MOU, MTA is acting pursuant to its statutory authority and shall have no liability in connection with the use of these funds for public transit purposes. GRANTEE agrees to indemnify MTA for all liability arising out of GRANTEE's performance in the provision of public transit services paid for by these funds. ARTICLE 7. PENALTIES 7.0 The MTA reserves the right to terminate this MOU and withhold funds if it is determined that the GRANTEE has not made every effort to adhere to all warranties and conditions identified in the Guidelines. In addition, the MTA reserves the right to terminate this MOU in the event of continued and/or gross violations of this MOU. 7.1 Any withholding of funds, termination of the MOU, or imposition of any financial penalty against GRANTEE under Sections 10.1 and 10.2 of the Guidelines is subject to nine (9) affirmative votes by the governing board of the MTA. IN WITNESS WIIEREOF, the parties hereto have executed this Memorandum of Understanding by their duly authorized representatives this day of , 1994. CITY OF SANTA CLARITA QI City Manager Date LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION COMMISSION im APPROVED AS TO FORM: City Attorney Date ATTEST: City Clerk Date Date